Slide 1: Q4 FY24 Earnings
Q4 FY24 Earnings May 9, 2024 Copyright © 2024 Gen Digital Inc. All rights reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,” or similar expre
Slide 3: Purpose and Mission: Powering Digital Freedom
Purpose Powering Digital Freedom Mission We create technology solutions for people to take full advantage of the digital world, safely, privately, and confidently – so together, we can build a better tomorrow. Copyright © 2024 Gen Digital Inc. All rights reserved. 3
Slide 4: Business & Portfolio Highlights
Business & Portfolio Highlights Copyright © 2024 Gen Digital Inc. All rights reserved. 4
Slide 5: FY24 Snapshot
FY24 Snapshot Core Cyber Safety Metrics Revenue $3.8B+, +15% CC Op Margin 58%, +340 bps EPS $1.96, +11% CC $3.9B 65M+ 39M+ ~$300M Total Bookings Total Paid Direct Customers Annual Cost Synergies +3% Cyber Safety Y/Y Customers +0.9M net Y/Y achieved in 18 months 77.5% Direct Retention $7.25 Direct Mo
Slide 6: Copyright © 2024 Gen Digital Inc. All rights reserved.
Copyright © 2024 Gen Digital Inc. All rights reserved. 6
Slide 7: Anti-Scam Leadership
Anti-Scam Leadership Download today: https://Genie.AI Norton + AI: • Scam Detection at your fingertips • Simply take a screenshot of your text or email and share it with Genie • Proprietary AI that delivers results in seconds • Powered by Norton - Advice you can trust 1M+ App Downloads to date 4.7 A
Slide 8: Avast One Silver
Avast One Silver Personalized, Modular Cyber Safety Membership The new Avast One Silver allows people to add advanced security, privacy, or performance features to suit their personal preferences or needs Protection Privacy Performance Continued progress of providing integrated Device Security Unlim
Slide 9: Our AI-enhanced roadmap for personalized Cyber Safety
Our AI-enhanced roadmap for personalized Cyber Safety AI-driven bias protection Personalized deepfake & misinformation Digital footprint management & reputation Safe payments management & financial Identity verification protection Personalized risk & digital trust Scam, fraud detection & proactive s
Slide 10: NextGen Cyber Safety on Gen Stack
NextGen Cyber Safety on Gen Stack Trusted Always On Personalized Empowering Gen is enabling people to make the most of the digital world — safely, privately and confidently Copyright © 2024 Gen Digital Inc. All rights reserved. 10
Slide 11: FY24 Full Year & Q4 Results
FY24 Full Year & Q4 Results Copyright © 2024 Gen Digital Inc. All rights reserved. 11
Slide 12: Consistent Execution
Consistent Execution Q4 Y/Y % Y/Y % FY24 • FY24 Revenue of $3,812M, Cyber Safety up 3% (CC) Non-GAAP P&L ($mil), except per share amounts FY24 USD As Reported USD As Reported when including Avast historical results Revenue $967 2% $3,812 14% • Broad-based growth across channels and products, Y/Y % (
Slide 13: Gen Performance Metrics
Gen Performance Metrics REVENUE CYBER SAFETY METRICS Q4 Q3 Q4 Y/Y % Y/Y % Q4 Q3 Q4 Y/Y FY23 FY24 FY24 USD CC FY23 FY24 FY24 Direct Customers 38.2M 38.9M 39.1M 0.9M Direct (1) $831 $837 $847 2% 3% (Q/Q change) (183K) +330K +232K + Partners $100 $99 $105 5% 5% Direct Monthly ARPU (3) $7.24 $7.21 $7.24
Slide 14: ~$300M annual cost synergies delivered within 18 months
~$300M annual cost synergies delivered within 18 months At Close % of Q2 Q4 Q3 Q4 ● Integration Update: (1) Revenue FY23 FY23 FY24 FY24 ● Nearly $300M annual run-rate synergies achieved to date COGS 13% 14% 13% 14% ● Remaining portfolio integration: timeline on track, expected to consolidate platfor
Slide 15: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Key Balance Sheet, Q4 Q3 Q4 • Liquidity of $2.3B+ ($846M cash + $1.5B revolver undrawn) Cash Flow, & Other Metrics FY23 FY24 FY24 ($mil) • $900M domestic tax refund (1) received at the end of January Balance Sheet 2024, partially deployed towards debt paydown Cash, Cash Equ
Slide 16: Q1 FY25 and FY25 Non-GAAP Guidance
Q1 FY25 and FY25 Non-GAAP Guidance Q1 FY25 FY25 FY25 Key Assumptions (Growth in Constant Currency) • Cyber Safety Bookings growth: 3-5% REVENUE REVENUE $960M - $970M $3.890B - $3.930B • Cyber Safety Revenue growth: 3-4% EPS EPS • EPS growth: 12-15% $0.52 - $0.54 $2.17 - $2.23 • Stable currency and S
Slide 17: Supplemental Information
Supplemental Information Copyright © 2024 Gen Digital Inc. All rights reserved. 17
Slide 18: Capital Structure
Capital Structure Facility Revolver (RCF) – undrawn at Q3 qtr-end Principal ($ mil) $1,500 Maturity 2027 Coupon If drawn: SOFR+CSA+1.75% Debt Maturities in $mil (Initial Principal Amounts) As of March 29, 2024 Term Loan A (TLA) $3,666 2027 SOFR+CSA+1.75% Term Loan B (TLB) $2,444 2029 SOFR+CSA+2% 202
Slide 19: Trended Non-GAAP Quarterly Results
Trended Non-GAAP Quarterly Results Non-GAAP P&L Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 ($M), except per share amounts Direct Customer Revenues 624 660 818 831 2,933 832 837 837 847 3,353 Partner Revenues 72 74 95 100 341 97 95 99 105 396 TOTAL CYBER SAFETY REVENUE
Slide 20: Reconciliation to Non-GAAP Gross Profit
Reconciliation to Non-GAAP Gross Profit GAAP to Non-GAAP Gross Profit Q1 FY23 Q2 FY23 Q3 FY23 QQ4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 QQ4 FY24 FY24 ($M) GAAP Results of Operation Gross profit (GAAP) $605 $629 $758 $757 $2,749 $767 $768 $769 $777 $3,081 Non-GAAP Gross Profit Adjustments Net revenues •
Slide 21: Reconciliation to Non-GAAP Operating Income
Reconciliation to Non-GAAP Operating Income GAAP to Non-GAAP Operating Income Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 ($M) GAAP Results of Operation Operating income (GAAP) $261 $241 $368 $357 $1,227 $362 $25 $335 $400 $1,122 Total Non-GAAP gross profit 7 17 58 59 1
Slide 22: Reconciliation to Non-GAAP Net Income
Reconciliation to Non-GAAP Net Income GAAP to Non-GAAP Net Income ($M) Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 GAAP Results of Operation Net income (GAAP) $200 $69 $165 $915 $1,349 $189 $149 $144 $134 $616 Total Non-GAAP gross profit adjustment 7 17 58 59 141 58 59
Slide 23: Reconciliation to Non-GAAP EPS and Net Income
Reconciliation to Non-GAAP EPS and Net Income Q4 FY24 GAAP to Non-GAAP EPS and Net Income (1) ($M), except per share amounts EPS Net Income GAAP EPS / Net Income $0.21 $134 • Stock based compensation 0.05 31 • Amortization of intangible assets 0.17 107 • Restructuring and other costs 0.03 21 • Acqui
Slide 24: Reconciliation to Non-GAAP (Unlevered) Free Cash Flow
Reconciliation to Non-GAAP (Unlevered) Free Cash Flow Unlevered Free Cash Flow Reconciliation ($M) FY24 Net Cash Flow from Operating Activities $2,064 Adjustments: • Capital Expenditures (20) Free Cash Flow $2,044 Adjustments: • Cash paid for interest expense, net of interest rate hedges $591 Unleve
Slide 25: Trended GAAP Revenue by Geo
Trended GAAP Revenue by Geo Revenue by Geo ($M) Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 US 472 486 551 562 2,071 560 565 565 580 2,270 Rest of Americas 29 37 56 54 176 56 55 56 56 223 Americas 501 523 607 616 2,247 616 620 621 636 2,493 EMEA 125 143 227 229 724 227
Slide 26: Trended EBITDA (Non-GAAP)
Trended EBITDA (Non-GAAP) Reported EBITDA (Non-GAAP) (1) ($M) Q1 FY23 Q2 FY23 Q3 FY23 QQ4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 QQ4 FY24 FY24 Net income $200 $69 $165 $915 $1,349 $189 $149 $144 $134 $616 Adjustments: • Net interest expense 29 45 149 163 386 164 167 160 153 644 • Income tax expense (bene
Slide 27: Trended Share Count and Stock-Based Compensation
Trended Share Count Diluted Share Count Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Shares in millions Basic Share Count Weighted 578 590 647 639 614 640 640 639 630 637 Average Dilutive Potentially Issuable Shares: From Employee Equity 4 3 4 5 4 3 4 6 7 5 Awards From C
Slide 28: Debt Covenant EBITDA (Non-GAAP)
Debt Covenant EBITDA (Non-GAAP) Debt Covenant EBITDA (Non-GAAP) (1) ($M) LTM (3) Net income $616 Adjustments: • Net interest expense 644 • Income tax expense (benefit) (157) • Depreciation and amortization 485 EBITDA (Non-GAAP) 1,588 Adjustments to EBITDA: • Stock-based compensation 138 • Restructur
Slide 29: Use of GAAP and Non-GAAP Financial Information
Use of GAAP and Non-GAAP Financial Information We use non-GAAP measures of operating margin, operating income, net income, results of operations, and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics
Slide 30: Explanation of Non-GAAP Measures and Other Items
Explanation of Non-GAAP Measures and Other Items Bookings: Bookings are defined as customer orders received that are expected to generate net revenues in the future. We present the operational metric of bookings because it reflects customers' demand for our products and services and to assist reader
Slide 31: Thank you
Thank you Web: Investor.GenDigital.com Email: IR@GenDigital.com Copyright © 2024 Gen Digital Inc. All rights reserved. 31